Lego builds on sales surge as profits hit £750m
The Lego Group revealed a 17 per cent surge in revenues in the first six months of the year as it beat expectations with net profit of DKK 6.2bn (£750m).
Revenue for the period hit DKK 27bn (£6.2bn) as consumer sales boomed 13 percent, ahead of the wider toy industry.
Lego chief Niels B. Christiansen said he was “very satisfied” with the performance this morning after the firm dodged the worst of rising material and manufacturing costs amid soaring inflation.
“The strong revenue growth and free cash flow allowed the LEGO Group to significantly accelerate strategic initiatives and offset cost inflation on raw materials, energy and freight while keeping operating profit stable at DKK 7.9 billion,” he said.
“In the first half of 2022, the LEGO Group focused on expanding manufacturing capacity and building healthier inventory levels while increasing productivity following an extended period of exceptional growth rates and maxed out capacity in 2021.”
Lego sales were buoyed through the pandemic as housebound families looked to toys to pass the time through lockdowns. Cash levels dipped after a the bumper performance last year, falling to DKK 3.8bn from DKK 5.8bn in the same period last year.
Christiansen said the firm continues to see “strong demand for our products” in the second half of the year.
“Longer-term we expect top line growth to normalise to more sustainable levels,” he said.
“We will also continue to reinvest in our business and accelerate initiatives such as product innovation, digitalisation, production capacity, our retail network and sustainability to maintain momentum and deliver sustainable growth in the long-term.”